Musk's SpaceX prices record $75 billion IPO at $135 a share

NEW YORK, June 11 (Reuters) - SpaceX on Thursday priced the biggest-ever U.S. initial public offering at $135 per share, making Elon Musk's rocket and spacecraft manufacturer one of the world's most valuable companies.

The IPO raised a record $75 billion on the sale of 555.56 million shares, valuing the space, satellite and AI provider at $1.77 trillion, a record for an initial offering. Reuters reported last week that the firm was setting the price at $135.

Thursday's pricing caps off a months-long effort that realized Musk's most ambitious project yet even as he stood a handful of financial traditions on their heads, and as some analysts question whether its lofty valuation is justified.

SpaceX will rank seventh among U.S.-listed firms when its shares begin trading on the Nasdaq on Friday, though it lost money last year and other mega-caps far outpace its revenue.

That values the company more highly than firms as varied as JPMorgan Chase, Berkshire Hathaway and Eli Lilly, as well as tech giants such as Meta Platforms and Musk's own Tesla.

"The real test will be how the market digests the IPO over the next several weeks, not just one day," said Adam Sarhan, chief executive of 50 Park Investments in New York. "The pricing came in just about right - not too hot, not too cold. Clearly retail investors are buying and, at this stage, they are a big component of this. We need to see follow-through after the first day of trading."

The sale breaks the previous record for the largest-ever IPO held by state-run oil giant Saudi Aramco, which raised $25.6 billion on Riyadh's exchange in December 2019, valuing it at $1.71 trillion. In inflation-adjusted terms, Aramco raised $33.2 billion for a $2.21 trillion value.

SpaceX's $1.77 trillion valuation, based on 13.08 billion shares outstanding, could rise further should the underwriters exercise their right to sell additional shares, a decision typically made within 30 ⁠days after the offering. Reuters reported previously that SpaceX was seeking a $1.75 trillion valuation.

The company communicated the IPO price just after 3 p.m. EDT (1900 GMT), when its pricing meeting with bankers concluded and U.S. markets were still open, in a "free-writing prospectus" filed with the Securities and Exchange Commission.

SpaceX issued a press release half an hour later. Typically, the pricing meeting and the announcement of the ⁠IPO price take place after regular trading closes at 4 p.m., because securities issuers are wary of price-moving macroeconomic or news events affecting a share sale during regular trading.